What does this do to the attractiveness of the mba degree

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1. Nancy Geer is considering an Associate degree in finance. She estimates that she will forgo after tax income of $9,600 a year (she will have a part-time job), during the four years it will take her to complete the degree, but her expenses will be $3,600 a year less than if she were working. Tuition will be $10,000 at the beginning of each year. She estimates that her income will be $4,800 a year higher, after tax, for her 40-year working life if she receives the Associate degree. She can borrow the money needed at an interest cost of 8 percent, after tax. Would you recommend that she pursue the MBA degree?

2. Suppose Geer (problem 15) will have income that is $4,000 higher the first year, and the difference will grow at 4 percent a year thereafter. What does this do to the attractiveness of the MBA degree?

Reference no: EM131973690

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